DRA Calls For 80 Percent Reduction to Edison's $4.6 Billion Revenue Increase Request


 SAN FRANCISCO, May 12, 2011 –  The Division of Ratepayer Advocates (DRA), an independent consumer advocacy division of the California Public Utilities Commission (CPUC), on Wednesday released a report calling for a $3.7 billion reduction to Southern California Edison’s requested revenue  increases taking effect in 2012.

As a part of its general rate case, Edison has requested a revenue increase of $4.6 billion from 2012 to 2014. DRA analysis has determined Edison’s cost claims to be overstated by some 80 percent and urges the CPUC to approve a revenue increase of only $833 million. Edison’s request constitutes a 40 percent increase over current levels while DRA’s report recommends an 8 percent increase. DRA will present its analysis during evidentiary hearings before the CPUC in July.

“Our report finds bloated cost estimates in Edison’s request,” said DRA acting director Joe Como. “DRA’s recommendations represent a fair increase based on reasonable cost estimates.  Edison should be looking to trim its expenditures and be more sensitive to its customers’ financial needs.”

Edison asserts that additional revenue is needed to cover higher costs associated with, among other things: operating and maintaining its systems; serving its customers; capital investments; health benefits; employee salaries; and pension contributions.  DRA's own independent forecasts of these costs over the next three years are, cumulatively, $3.7 billion lower than what Edison estimates.

To see DRA’s report and the utility’s request, visit DRA’s Edison rate case page.